VAT Attack

[rffrydr]

Maybe not the kiss of daeath to the German recovery. Although each growth spurt in the last 20 years has been weaker, "experts" are discounting the economic consequences. Much is offset for the poor. And the retailers are getting tricky. Not everything is passed on.

Price-monitoring data show many retailers have begun to alter their price lists ahead of the tax rise while others intended to spread price increases throughout 2007. The latter policy could help contain the expected inflationary impact of the VAT rise--which is a silly, but true, support to the Euro.